Yes, for smaller holdings DRP might be considered if you want to accumulate small parcels.
However, a lot of shareholders might want to say buy a parcel of say 400 shares. At sub $25 the brokerage would be $20. Again why buy small parcels at $25.17 DRP price when market price is less. Likely to get down to $24.20 today with Wall Street having fallen tonight.
My principal point is that firstly,DRP is messy from recording and tax perspective. Secondly, it is much better to accumulate those dividends in a separate dividend cash account if you wish and later cherry pick larger parcels of stock with minimal brokerage at less that DRP pricing. Sure, you may later find WBC shares higher than current DRP price, but wait for price to soften or even accumulate other Bank stocks if that appeals
Good luck with your investments
WBC Price at posting:
$24.60 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)